Abel & Cole Organic Products Delivery Services

Abel & Cole Organic Products Delivery Services: Marketing
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Executive Summary
Abel & Cole is an online retailer of fresh organic products in the UK. The PESTEL and Porter’s Five Forces analysis indicate that the organization operates in a friendly environment supporting its business strategy. The organization’s major threat is stiff competition from organizations like Tesco and Sansbury.
Abel & Cole’s competitive edge is its business strategy that involves sustainability approaches. The company relies on a triple-bottom-line approach based on its business model of fresh, 100% organic products delivered efficiently using environment-friendly means like electric vehicles. While the company has a relatively strong social media presence, its digital communication strategies must produce ample online customer engagement. Improving this engagement is necessary if the company is to remain competitive against giants like Tesco.
It is recommended that the company changes its current strategy by tailoring posts with its business model. These include storylines and life journeys that have been transformed by reliance on Abel & Cole products. Table of Contents Abel & Cole Organic Products Delivery Services: Marketing. 1 Executive Summary. 2 1.0      Introduction. 4 2.0      Market Place Analysis. 4 2.1      Macro-environment Analysis. 5 2.2      Micro-environment Analysis. 8 2.3      SWOT Analysis. 11 3.0 Internal Environment Analysis. 12 3.1 VRIO Analysis of Company’s Internal Resources for Competitive Advantage. 12 3.2 Current Business Model 13 4.0 Digital Communication Strategy. 14 4.1 Current Strategy. 14 4.2 Innovation for the Future. 14 Project Summary. 15 Reference List 16

Introduction
Fresh from college in the 1980s, two friends, Keith Abel, and Paul Cole, went to Covent Garden Market and bought organic potatoes in bulk. They sold organic potatoes from door to door, attracting households’ attention. With time, as word of organic potatoes spread, demand for this product grew, highlighting a business niche thoroughly unexplored before. Apart from potatoes, customers started asking for other products like vegetables in their organic form. The demand for these products led to today’s Abel & Cole selling an extensive range of organic products, including fruits and vegetables, to customers in the UK. Currently owned by William Jackson Food Group, the company works with small, organic producers, both local and international, and supplies the products to consumers through environment-friendly strategies. In other words, the company’s business model is underpinned by the notions of environmental sustainability and fair compensation of farmers (producers). The current paper aims to evaluate Abel & Coles’s existing digital marketing approaches and propose future strategies to expand and cement its client base.
Market Place Analysis
As of 2020, Europe's per capita expenditure on organic food was 100 euros per person. According to Bedford (2023), there has been tremendous growth in the production and sales of organic food, with growing popularity in America and the European market. By 2020, France and Germany, the leading European nations in organic food production and consumption, experienced 12% and 25% growth, respectively. In the UK, sales increased by 30%, hitting three billion pounds as of 2021 (Newsmantraa, 2022). With over 1.97 billion pounds as of 2021, supermarkets remain the largest retail channel for these organic products, with dairy and produce ranked first and second, respectively (Bedford, 2023). Additionally, the UK has over 450,000 ha under organic farming, with organic poultry occupying the biggest portion.
While there is growth in demand for organic products, not all consumers are convinced of their relevance. Adults above the age of 65 years, for instance, are less likely to indulge in organic products (Kantar, 2020). The key market, therefore, lies in the younger generations increasingly concerned about fitness, healthy diets, and environmental protection, as Industry Research Biz (IRB) established that household expenditures on organic food and drinks reached 2.6 billion pounds in 2020 (IRB, 2023). Other factors that shape consumers of organic products include income and education. People with higher levels of education are more likely to buy organic products because of exposure to knowledge and the relevance of such products (Kantar, 2020). On the other hand, since organic products are expensive compared to fast food, they are more likely to be bought by individuals with relatively higher incomes.
Macro-environment Analysis
The macro-environment consists of factors outside the organization that the company has no control over. According to the PESTEL tool, these factors are classified as political, economic, sociological, technological, and environmental. Each of these factors affects the market, influencing decisions and business strategies within the organization.
PoliticalEconomicSocialTechnologicalEnvironmentalLegal Acknowledged by the government.
Cancelation of pro-GM survey
Food Standards Agency
Post-Brexit Environment Recovery from Covid-19
Post-Brexit Economy
Changes in Consumer TrustHealthy Living Trends
Pursuit of fitness
Resistance to genetically modified food products
Concerns about the environment & impact of food productionFarming technology
Digital technology
E-commerce UK 2030 environmental goals.
Impact of packaging of food products on the environment.
Environmental cost of food production
Strict production laws. Figure  SEQ Figure \* ARABIC 1: PESTEL Analysis of Abel & Cole Business Environment
The UK government recently canceled the publicly funded pro-genetically modified survey established by the previous administration. This move is important because it shifts focus from GM to organic products. Additionally, the state established Food Standards Agency (FSA) in 2011, which underpins the growing demand and health & environmental benefits of organic food products. Under the FSA, there has been a shift in focus where the government is increasingly compelled to make the consumption of organic products a norm. These political developments imply that Abel & Cole operates in a friendly political environment supporting its efforts and current business strategy.
Brexit disturbed UK’s economic relations with other European countries, while the pandemic caused a significant impact on the economy, wages, and household expenditures. Furthermore, the current economic crisis, worsened by the war in Ukraine, has further burdened consumers, who are increasingly spending less because of fear of local and global economic turmoil (NIES, 2023). This means that the household consumption of organic products may be affected, considering that they are relatively pricy compared to other more common choices like fast food. In other words, the current economic environment may limit Abel & Cole’s market expansion and hinder the company’s bottom-line growth.
Regarding social factors, people in the UK and the rest of the world are increasingly aware of the health impact of food choices. Outcomes like obesity and cardiovascular diseases are reaching alarming figures calling for a shift in thoughts and decisions on diet and fitness. Furthermore, there is increasing concern about the health impact of genetically modified food production, particularly regarding issues like cancer (Stanton, et al., 2021). Therefore, in the UK, Abel & Cole is favoured by social factors because it provides an option that supports healthy living and mindful well-being. Exploring these social factors and tying them to marketing strategies alongside providing quality products can propel the company to expand its market base and have a more secure bottom line.
Abel & Cole works with farmers who rely on environment-friendly farming methods. Central to these methods is technology, in terms of machinery and sensors, which increase the efficiency and predictability of production (Duruiheoma, et al., 2016). Additionally, there is a digital technology and the growth of e-commerce platforms. Digital technologies are ideas for reaching a diverse market base, while e-commerce platforms have improved efficiency in shopping and delivery of products. Therefore, Abel & Core stands a chance to expand its business based on the current technological developments.
The legal factor is also important in shaping how organizations involved in organic products operate on the market. In 2007, for example, the EU passed the Organic Agriculture Ordinance that established strict standards in key areas like animal husbandry, crop cultivation, and food processing (Smith, et al., 2018). Such strict laws and regulations are still operational in the UK, meaning that non-adhering organizations risk being locked out.
Regarding environmental factors, the UK is among the countries with strict environmental laws and policies. For example, the Net-Zero goal on emissions will see the country rely entirely on clean energy sources by 2035 (Sajjadian, 2023). The government is also working on measures to transform the UK into a low-carbon economy. These developments align with Abel & Cole’s sustainability strategy, where they pursue organic products produced responsibly and strive to deliver products to consumers with minimum environmental impact.
Another way of looking at macro-environment factors is through Porter’s five forces model. Based on this model, there are five important forces to consider: competition in the industry, the potential of new entrants, the power of suppliers, the power of customers, and threats of substitute products. Figure 2 below is a summary of these forces regarding Abel & Cole.
Force Factors Threat Level Industry Competition Stiff competition from online suppliers and supermarketsHigh The Potential of New Entrants Strict production and market laws & regulations and current competitionLowBuyer Bargaining Power Hard economic times highlighted by strikes and post-Covid economic recovery. Medium Supplier Bargaining Power Increased production costs due to hard economic times.High Threat of Substitutes Availability of cheaper fast-food options. LowFigure  SEQ Figure \* ARABIC 2: Porter’s Five Forces
Abel & Cole faces stiff competition from major retail supermarkets like Tesco, Sainsbury’s, and Waitrose. As already established, these supermarkets have the largest organic produce market share in sales. Regarding online delivery, Abel & Cole faces competition from organizations like Riverford, Farm Drop, Oddbox, and PiktFresh (Kantar, 2020). Each of these organizations also boasts of sustainability strategies. The market is difficult for new entrants because of the current competition, recent laws & regulations, and high start-up costs. The difficult economic times highlighted by the slow recovery from the pandemic and recent strikes imply that buyers are unwilling to spend more. However, the expected recovery makes this a medium-level threat, particularly because of the social factors (figure 1) driving the organic products market. At the same time, however, the high production costs mean suppliers have a higher bargaining power. Alternative food products like fast food also threaten the industry, particularly when combined with the current economic situation.
Micro-environment Analysis
Target Market
Consumers of organic food products are more likely to be under the age of 65 years, with a college or university level education, and earning medium to high incomes. These consumers are also aware of the environmental problems facing the world today. They are concerned with a healthy lifestyle that prevents them from chronic conditions like obesity, diabetes, and cardiovascular conditions. Figure 3 represents a typical millennial female consumer focused on balancing a healthy lifestyle and a busy work schedule. Figure 4, on the other hand, represents a suburban dweller with a stable income and struggling with weight issues.
Customer Persona 1
Demographic Information
Age: 30 (Female)
Status: Married without Children
Education Level: University
Income: Ј34,000
Resident Location: Urban...